LG Electronics India sets IPO price band at Rs 1,080-1,140/share; eyes to raise Rs 11,607 cr

New Delhi: LG Electronics India Ltd, the Indian arm of South Korea's LG conglomerate, on Wednesday set the price band at Rs 1,080-1,140 per share for its much-awaited Rs 11,607 crore initial public offering (IPO).

At the upper end, the company is valued at around Rs 77,400 crore.

The IPO will open for subscription on October 7 and close on October 9, with anchor investor bidding scheduled for October 6, the company said in a public announcement.

This will be the second South Korean company to tap the Indian stock market, following the listing of Hyundai Motors India Ltd in October last year.

The IPO, entirely an offer-for-sale (OFS) of 10.18 crore shares, representing about 15 per cent stake, by the South Korea-based parent.

Since the public issue is completely an OFS, LG Electronics India will not receive any IPO proceeds. The funds raised will go to the South Korean parent.

LG Electronics India is a leading player in major home appliances and consumer electronics. The company's products are sold to both B2C and B2B customers in India and abroad. It also provides installation, repair, and maintenance services for all its products.

The company manufactures and sells products, including washing machines, refrigerators, LED TV panels, inverter air conditioners, and microwaves. It has manufacturing units in Noida, Uttar Pradesh and Pune.

On the financial front, LG Electronics India's revenue from operations was Rs 64,087.97 crore for the financial year ended March 31, 2024.

In terms of issue allocation, 50 per cent of the IPO is reserved for qualified institutional buyers (QIBs), 35 per cent for retail investors, and the remaining 15 per cent for non-institutional investors.

LG India is expected to make its stock market debut on October 14.

Morgan Stanley India, J P Morgan India, Axis Capital, BofA Securities India, and Citigroup Global Markets India are the book-running lead managers for the IPO.